Answers
does the amount of overdraft line of credit get reported and does having it increase your credit score? or is it nothing. because i feel bad i selected to get only $0 instead of the $1000 they offered when i signed up for online interest checking.
by the way this is not a credit card it's an online checking account that pays interest.
I think you can always change it Lee. It just means that's your amount of overage. Call your bank or Credit card loaner. See if i am right, cause I could be mistaken. If you chose to go 000 over limit,that's probably going to cost you if you do go over limit. Try to pay your card off every month. Dorothy (aka Happy New Year)
loans" "unsecured personal loan" "line of credit" "unsecured business loan" "personal line of credit" ...
When I signed up for my online checking i was given the option to choose from $0-$1000 overdraft line of credit, but i chose $0.
Overdraft Line of Credit
You currently have an Overdraft Line of Credit of $0.00. If you need to use your line of credit, there is no fee; you will just pay a variable competitive interest rate of 7.25% on the amount you need.
My question is what exactly is overdraft line of credit and what is it good for.
Was it a bad choice for me to have chosen $0? does it matter? does having a bigger amount help me? is there any benefits? does any of this help or worsen my credit score?
does it even get reported to credit report companies? this is just an online interest checking account.
if i never get overdrafted is it fine if i just have a $0 overdraft line of credit? i don't get what that 7.25% means.
please help explain what this overdraft line of credit means. and is it good to have a higher amount? i currently choose to get $0 overdraft line of credit what does that mean?
An overdraft line of credit is a loan attached to your checking account. . When you spend all of the money in your checking account, you start borrowing against your overdraft line of credit. It is meant to cover you in case of an accidental overdraft.
It's easy to abuse an overdraft line of credit; you should not use your overdraft line of credit regularly. Constantly using it is a sign that you need to work on managing your money. You can write a check against your account when you know it's empty, but that's a bad habit to get into.
If you misuse your overdraft line of credit, your bank can refuse to cover transactions or close it. It usually has a credit limit too; anywhere from $100 to $1000.
Having a "$0" overdraft line of credit means you don't have that particular feature on your checking account -- which is a good thing. You'll be less likely to use it as a crutch, and more likely to keep close track of your account balance.
Read Your Credit Card Bill Carefully |
Here’s some friendly year-end advice: Read those disclosure letters that banks and credit-card companies are sending you in coming months or at least try really hard.
The text of these mailings may seem like gobbledygook. But they may require you to make important choices soon. Ignoring them could mean paying a lot more money to your credit-card company, having a credit card rejected or getting an unpleasant surprise at the ATM.
New legislation and Federal Reserve rules that go into effect in February and next summer will force banks and credit-card companies to give more notice of significant changes in card terms, limit some interest-rate hikes and require more detailed billing statements. But the rules will also require us to decide whether to opt in or out of rate increases and programs such as “overdraft protection” that we may have been automatically enrolled in previously.
...News
Ignoring Credit-Card Mail May Cost YouWall Street Journal - Dec 17, 2009
My Bank Tracker Bank NewsIf you have good credit, you can apply for an overdraft line of credit, which kicks in when your checking account is empty. There's a fee, often $10, What to Do in 2010: Banking, Loans, and Credit Cardsall 56 news articles »
Gaston Gazette - Dec 25, 2009
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Many fees can't be avoided no matter where you put your money, such as overdraft fees. Banks and credit unions combined collected nearly $24 billion in and more »Globe and Mail - Dec 05, 2009
"We are always in the red and pay a lot of interest and overdraft charges," she laments. They've had to dip into their line of credit to make ends meet, and more »Business Standard - Dec 29, 2009
But the collapse of Lehman on September 14, 2008, meant that the global credit markets froze. Interest rates rose as no one was willing to lend. and more »Times Online - Dec 27, 2009
For those who need an authorised overdraft facility, the lowest rate comes from Cahoot, which charges no interest up to £100 and then 11.8% up to £1000. and more »lovemoney.com - Dec 11, 2009
So you can use this card to pay off an expensive overdraft, for example. And the best bit is that you'll have 16 months to pay off this debt interest-free! and more »